The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1887-12-30

French mint, which fixed it at 15k tn
1. This premium prevailed until long
after the passage of the act of 1873 de.
J monetizing silver.
Alter the passage of the act emitting
the silver dollar from the list of coins
the bondholders contended that their
bonds were payable in gold alone. To
meet this preteose Doth Houses of Con-
gress, in January, 1878. by a vote of
nearly three-fourths of each House.
declared that the bonds of the United
States, according to the contract be-
tween the bondholders and the govern
ment, were payable in either gold or
silver coin. notwithstanding this. the.
Treasury Department has at all times
assumed that the bonds were payable
IN gold alone, and constantly COM
planned that silver was accommodating in
the vaults of the Treasury and hat the
people were refusing to take it. II silver
is really cheaper than gold it is the
outy OF the Secretary to pay the bonds
IN mat metal: in other words, IL is his
duty to save for the United States all
ne legally can. He has no right to do
nate the peoples money. The bond
holders have no reason to Complain.
They obtained their bonds with
money at a discount of so per cent
The partiality of the Treasury De-
partment in paying them in gold
alone has raised the bonds to
premium o! from 25 to 80 per cent. in
gold, which, added to the discount.
gives them profit on the money in
vested. in addition to interest, of at
least Is cents on the dollar.
EFFECT ON FARM PRODUCTS.
While the bondholder has grown
rich by this war on silver, how has
the farmer Jared? Wheat. for example,
is cheaper to-day than it has been
for 100 years. The farmer of the
United States is forced to sell his
wheat on gold basis. He is suffering
the full force of the demonstration of .
silver and the destruction of one-half
of the worlds money. The god coin in
circulation to-day does not xceed the
gold and silver coin in circulation
in Europe and America has about
doubled in that time. This is
not all. The fact that silver is
over % per cent. discount in the United
States Is developing the productive
industries of India, where silver re-
mains at par with gold. The speculator
buys silver in America at discount of
25 per cent. and exchanges il in India
for wheat and cotton at par. He has
25 per cent. advantage in the London
market over the importer of wheat from
America, who buys for gold. In 1879,
before cheap silver had stimulated the
production Of wheat in India, the United
States shipped to Europe over $50. 600 geo
bushels of wheat and sold it for over
$50, coo. coo. In the same year India
exported only 100000 bushels. In
1886 the Uni ed States shipped less than
So 600 900 bushels Of wheat to Europe
and only received for it little over
$50 0C0 600, while in the same year
midas shipment rose from 1900, 600 in
1870 70 80 600 COO bushels in 1886. There
has been no overprCduction of wheat to
reduce the price. There has been no
increase in The last ten years except in
India; on the contrary, there has been
a decline in quantity throughout
Europe and America.
In Junt, 1886, an animated discussion
,curIed in London at The Colonial
Chamber OF Commerce. Upon the sub
ject of the low price OF silver and its
effect upon the prosperity of India, Sir
Robert n. Fowler, NJ. P, a London
banker and ex-lOrd mayor said that
the effect of the depreciation of silver
must finally be the ruin Of the wheat
and cotton industries of America, and
be the development CT India as the
chief wheat and cotton exporter of the
world" Notwithstanding these plain
facts and the universal depression of
the farming business of the United
States caused by the loT price of pro-
ducts growing out of the demonetiZa-
ton of silver, the bondholders still III
sist upon their demands.
CAN THE UNITED STATES ALONE REMoNE-
TIE SILVER?
We are told that if we change our
policy and receive silver as money
metal we will be ruined, and that we
can not DO it alone and must have the
cooperation of nations. This is not
true for several reasons. Pass the bill
have introduced requiring the
Secretary of the Treasury to
receive all the silver and gold bullion
that Is offered, pay for it IN certificates
according TO thestandard value fixed by
our law, that Is at the ratio between
the two metals of sixteen 10 one, and
the value of silver as compared with
gold will be instantly established
the world at sixteen to one.
For no person in Europe, Asia, Africa
or America Will sell his silver for less
get for it In the United States. France,
in 1885, passed u free coinage act, by
viii she received al the sold and sil
yer bullion presented, paid for it at the
ratio between. the two metals OF fifteen
and one-half to one, and maintained
that ratio throughout The world for
nearly 100 years3uAtiI she finally con-
spired to demonetize silver about the
year 1875. England, III 1916 demon
cited silver in England, but ,usin-
tained it as legal tender in India.
This bad Do effect upon the price of
silver, Tor DO one would sell it iOr less
than he could obtain in France. The
attempts of the various governments
between 1854 and 1860 10 demonetiZe
GOLD Tad no effect upon the value of
gOlo, because the French mint was
open to receive it al a fixed ra5io. The
acton of Germany in 1871 and
1873 the decentralization Of silver
in no nit 1919 and the